Week 3 Discussion
“The Business Model” Please respond to the following:
- From the business that you proposed in Week 2, estimate the cash you would need to start that business and run it for five years. Analyze the difference between profit and cash flow within your business. Support your estimation and your analysis.
- From the case study and the e-Activity, compare the value of MySpace to the current business status of MySpace. Also, compare CleanBeeBaby’s business model to MySpace. Determine what the next steps should be for CleanBeeBaby to achieve success. Contrast MySpace and Facebook’s business model and share price today.
The business that I can offer is offering accountancy services to small and medium enterprises. I will be doing bookkeeping to the company, working up the balance sheet, monthly financial report and the income statement depending on what the business needs. I can offer other services like tax accounting. My business will provide the best value for my customer. I will talk with my customers, watch and survey them so that I can know what driving them so that I can deliver the best value. I will offer the best professional services at the best prices to my customers.
The challenges that I will need to overcome for me to succeed in my business are lack finances, lack of accountant professionals to carry out the services to the customers. I will look for investments to fund my business and ensure that I get professionals who are competent in my shop. The challenges the company may face is a lack of good teamwork, to get a combination of people with the right mix of skills is a problem. To maintain the CEO will have some drawbacks like not recruiting new skills with new experiences in the company, the remedy will be hiring a new CEO in the company. The five porter’s forces include industry competition, the potential of new investors in the industry, supplier’s powers, customer powers and the threat of the substitute products. The company will employ the forces to face the challenges.
Considering pastel analysis, we will use the Nike company. In the political issue. Nike is following all the national rules and regulations (Bush). In an economic view, the company sells good products and also develops the economy. In the social factors, the company should ensure they are health concise, and in the technology manner, the company is innovative in different ways.
Solution Preview
The Business Model
The proposed business does not require a lot of money to start. Service offering venture do not normally require a lump sum to start since there are no related inventory costs. The accountancy services business will deal with provision of accountancy services to small and medium enterprises around my town. This will not require any money as the services will involve doing bookkeeping activities for these businesses which can be done in their premises, working up the balance sheet, monthly financial report and the income statement depending according to the business needs.
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